Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has awarded Gas Distribution Licenses to 10 companies, selected from 30 applicants. These licenses cover a significant capacity of 1.5 billion standard cubic feet per day, with over 1,200 kilometers of gas distribution pipeline network, serving more than 500 customers.
The licenses are part of the Phase-1 Gas Distribution Licensing regime, aimed at supporting the development of Nigeria’s domestic gas market. The regime focuses on supplying gas to energy-intensive industries, industrial parks, and special economic zones, among others.
Notably, the NMDPRA has also announced plans to periodically revise gas pricing and tariffing frameworks to ensure fair and competitive costs. Additionally, the authority aims to complete critical gas infrastructures, including the OB3 river crossing, the AKK pipeline, and gas processing facilities across the country.
In a related development, the Executive Director of NMDPRA, Mr. Ogbugo Ukoha, revealed that the authority issued 15,000 licenses to operators in 2024. He also predicted that Nigeria would transition to conveying gas through pipelines to end-users within the next 15 years, eliminating the need for gas cylinders and trucks.